Trade-Ideas: Applied Materials (AMAT) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Applied Materials as such a stock due to the following factors:
- AMAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $218.8 million.
- AMAT is up 8% today from today's close.
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More details on AMAT:
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, solar photovoltaic (PV), and related industries worldwide. The stock currently has a dividend yield of 2%. AMAT has a PE ratio of 18. Currently there are 10 analysts that rate Applied Materials a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Applied Materials has been 11.2 million shares per day over the past 30 days. Applied has a market cap of $22.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.79 and a short float of 1.2% with 1.35 days to cover. Shares are up 6.7% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Applied Materials as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 245.00% to $207.00 million when compared to the same quarter last year. In addition, APPLIED MATERIALS INC has also vastly surpassed the industry average cash flow growth rate of 11.32%.
- 44.57% is the gross profit margin for APPLIED MATERIALS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.67% trails the industry average.
- Despite currently having a low debt-to-equity ratio of 0.47, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that AMAT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.06 is high and demonstrates strong liquidity.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, APPLIED MATERIALS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- APPLIED MATERIALS INC's earnings per share declined by 10.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, APPLIED MATERIALS INC increased its bottom line by earning $1.12 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.32 versus $1.12).
- You can view the full Applied Materials Ratings Report.
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